Seplat Energy Sells 10% Offshore JV Stake to NNPC for $281.6m

Seplat Energy Plc has entered into a definitive agreement to sell a 10 percent working interest in its offshore joint venture assets to state-owned Nigerian National Petroleum Company Limited (NNPC) for a headline transaction value of $281.6 million.

The deal involves assets held within the NNPCL-SEPNU Joint Venture (formerly the Mobil Producing Nigeria Unlimited offshore shallow-water portfolio). According to executive disclosures released on Thursday, July 30, the transaction price recoups approximately 25 percent of Seplat’s initial acquisition costs for the offshore portfolio. The transaction is slated for formal completion during the second half of 2026.

News of the divestment accompanied Seplat’s half-year (H1) 2026 corporate earnings performance, which saw net profits surge by 498 percent year-on-year to $164 million, driven by robust operational cash flows and steady production averages of 139,509 barrels of oil equivalent per day (boepd).

The partial equity sale reflects Seplat’s broader corporate strategy to optimize capital allocation and deleverage its corporate balance sheet following its historic integration of offshore shallow-water assets.

Seplat’s management confirmed that proceeds from the partial divestment, combined with strong operational execution during the first six months of the year, enabled the company to make early debt repayments—including liquidating $200 million under its Advanced Payment Facility (APF).

Addressing analysts and shareholders, Roger Brown, Chief Executive Officer of Seplat Energy, framed the transaction as a strategic win-win for both indigenous operators and the state oil enterprise.

“Our first-half performance benefited from a supportive commodity price environment, translating into strong cash generation,” Brown stated. “Given the limited visibility on how long these elevated prices may persist, we prioritised balance sheet strength during the quarter, repaying $200 million of our outstanding APF debt.”

“The agreement reached with NNPC Limited to sell a 10 per cent interest in our offshore JV further enhances shareholder returns, bringing total expected dividends for 2026 to 68.3 US cents per share,” he added.

Massive Windfall for Shareholders

The divestment deal serves as a primary engine for an unprecedented dividend payout plan. Seplat announced that total full-year 2026 dividend distribution is expected to reach $410 million (68.3 cents per share)—representing a 173 percent increase year-on-year and accounting for over 40 percent of the company’s five-year target to return $1 billion to shareholders by 2030.

For the second quarter of 2026, the company declared an interim dividend of 12.0 US cents per share ($72 million), consisting of a 5.0-cent core base payout alongside a 7.0-cent special dividend.

Corporate Context

The transaction reinforces the evolving partnership between Nigeria’s state energy firm and its leading private producers. Following the enactment of the Petroleum Industry Act (PIA), NNPC Limited has increasingly sought to secure direct equity positions in highly lucrative producing assets to bolster state revenues and domestic energy security.

For Seplat—the first equity on the Nigerian Exchange (NGX) to cross the historic ₦10,000 per share mark earlier this year—the $281.6 million deal allows the firm to retain majority operational control over its offshore core while freeing up significant liquidity to expand domestic gas processing initiatives across the country.